Archive for future gold

The bullish trend for spot gold shows no sign of abating with the spot gold price surging higher once again yesterday to close at $1405.50 per ounce, having achieved an intra day high of $1410.40. This bullish sentiment has spilled over in today’s gold trading once again, as the spot gold price has continued to climb to trade at time of writing at $1420.65, only $30 per ounce short of my end of year forecast of $1450 per ounce which I will now have to revise upwards!!

The upwards momentum has been given a further boost in the last few days by some loose talk of a possible return to some form of “gold standard” in an endeavour to bring some measure of control to the currency markets. However, given that the original gold standard was largely responsible for the Great Depression this seems highly unlikely, but it is certainly helping to propel the precious metal higher and indeed in an article I posted last night there was a suggestion that gold could even achieve $10,000 per ounce when considered against previous benchmarks of bonds and equities. You can read this article by following this link. Gold Standard

Spot gold prices continued higher once again on Friday ending the week on a positive tone and a wide spread up candle which touched an intra day high of $1319.75 per ounce on the daily chart, further extending the bullish rally. Thursday’s doji candle failed to materialise into a minor pull back and can be largely discounted following Friday’s strong tend which continues to receive excellent support from all our moving averages. The short term 9 and 14 day moving averages, in particular, are continuing to provide an excellent platform of support and this was further evidenced on Thursday with the low of the gold trading session touching the 9 day average before rebounding higher once again. Below this the 200 day average is now sloping gently to the upside confirming once again the longer term bullish trend for spot gold as a result. There is nothing on the daily or weekly gold chart to suggest at present that the currently established bull trend is likely to pause or reverse in the short term.

Spot gold finally broke and held above the key $1300 per ounce price handle ending yesterday’s gold trading session as a wide spread up candle with a small wick to the low of the body. Following the relative inactivity of the past few gold trading session as the market hovered at this key price point, yesterday’s price action came as a welcome relief to gold bulls, adding a considerable degree of momentum to the bullish trend once again which helped to push the price of the precious metal into these fresh price highs. A key feature of yesterday’s price action was the technical support from the 9 day moving average which once again confirmed the strength of the current trend for the commodity. At present the demand for gold and gold backed products shows little sign of abating, with the commodity benefiting from the present round of currency wars, coupled with central banks priming their printing presses once again with consequent inflation looming it is little wonder that investors are seeking the ultimate safe haven in these troubled and turbulent times. The bullish momentum has continued in this morning’s early gold trading session with spot gold currently trading at $1310.50 per ounce at time of writing.

The spot gold price continued to extends its bullish trend once again yesterday ending the gold trading session as a narrow spread up candle with a small wick to the upper body which tested the $1296.05 price point but just failed to attack the $1300 per ounce level which the gold market is now eagerly awaiting. Yesterday’s move higher made it a straight 8 days of gains for the precious metal, moving well above the short term moving averages, which are continuing to provide excellent support to the longer term trend. Following Tuesday’s FOMC meeting gold received a further boost on the news that the FED are fully prepared to implement a further bout of quantitative easing, which has now been delightfully christened the QE2. In addition, and as a result, investors are now seeking safe havens and having apparently abandoned the US dollar are increasingly looking to gold as the ultimate protection against all eventualities – inflation, deflation or stagnation. With both the technical and fundamental drivers now firmly moving in tandem, the long term outlook for spot gold remains firmly bullish and our target for Q1 2011 remains $1500 per ounce which we feel is a realistic target for the precious metal.

News that central banks are expected to be net buyers of gold bullion this year for the first time in 20 years following heavy selling during the past 10 years together with a weaker US dollar helped to push the spot price to fresh highs and marks a remarkable rehabilitation for gold as an attractive (albeit non-yielding asset). The question now is how far the gold price is likely to rise, given the recent break into new high ground and one way is to consider the gold futures market. A detailed analysis of the December gold futures contract can now be found at my new gold futures site which may help to give us some clues.